I was shocked to learn the Shenkman Arts Centre in Orleans showed a deficit of almost $14 million dollars since opening some five years ago. Why this happened is the question that can only be answered by city councillors as they approved it.
This is how the system works:
· A motion is presented to city council for its consideration
· Council approves the motion and sends it to the City Manager’s office to be researched
· The City Manager’s office develops a business plan
· The business plan is presented to city council for its consideration
· City council recommends changes and sends it back to the city manager. Changes are made and sent back to city council
· City council takes a yes or no vote
The key question is why was it approved by council? Are these councillors capable of analysing a business plan?
Here is what the City had to say:
Earle,
From your questions, I perhaps get the feeling that you expect this facility and others that the city operates to generate a profit? Is that a correct assessment?
While it is always the City’s objective to provide services to the public at an efficient and low cost to the taxpayers of the City, services such as Parks & Recreation and the facilities from which services are delivered (sports or cultural facilities), do not break even or generate a profit. These are services which Council has deemed should be provided as a community benefit to the residents of the city.
For information, I’ve attached some links to reports / background on the Shenkman Centre.
http://ottawa.ca/en/residents/water-and-environment/green-living/orleans...
http://ottawa.ca/calendar/ottawa/citycouncil/occ/2006/05-24/csedc/ACS200...
Tom Fedec
Manager - Budgets & Financial Planning
Financial Services Branch
City of Ottawa
100 Constellation - 4th Floor West
Ottawa, ON K2G 6K8
(613) 580-2424 ext 21316
tom.fedec@ottawa.ca
Until Shenkman, Centrepoint and other similar developments throughout the city have been audited and the results provided to the public by the media, all proposed projects, including the $34 million Arts Court (see below), need to be put on hold immediately.
http://www.ottawasun.com/2013/10/29/city-finds-money-for-arts-court-taki...
Regards,
Earle Rheaume
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